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2b. Authorization to Initiate Contract Negotiations with Existing Haulers for Organized Collection within the Cityi C 0 �P, b CITY OF CHANHASSEN 690 COULTER DRIVE • P.O. BOX 147 * CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 BACKGROUND The City Council held a workshop on June 20,1994 to receive an interim report and update on the status of the organized collection study process. At the workshop, a consensus was reached that the City should begin negotiations with existing haulers on organized collection based on the concept contract as contained in the Contract Outline. City Council members acknowledged that the awarding of additional customers based on performance criteria would be problematic; however, they still believed that the organized collection program should incorporate performance evaluation criteria, if possible City Council members agreed that if the reporting requirement was not necessary, i.e., if Carver County could supply the reports, then it would not be a necessary component of the contractor the City to receive individual reports. Council members also wanted included, as part of tote basic collection package, door side pickup for disabled individuals. Finally, it was felt that i ,common billing format would be desirable for the `organized collection vrom m. , A The Organized Collection Study Committee met three times to review the pro0tised contract. Committee meetings served As .a point of discussion and debate with the_ haulers for the basic elements of the contract. Several of the haulers also submitted written comments to the project consultant for consideration. There are maay details in the contract in which no consensus was reached. The Study Committee' ". has " "embraced the conceptual elements of the contract and acknowledged that details of a cd'ct are subject to a negotiation process with the haulers. The Study Committee has recommended the City Council authorize negotiation of a contract for service with existing haulers. It is important to note that while the haulers have generally agreed on the basic elements of the contract, there are several items of concern and no consensus on many of the details of MEMORANDUM Action by City Administmtot TO: Don Ashworth, City Manager Indorse ✓ �WA- Modif FROM: Bob Generous, Planner Il DATE: July 6, 1994 00 Submitted to Commission o Council itted t Submitted —t0 t SUBJ: Chanhassen Organized Collection Study 7 5 Phase II - Recommendations BACKGROUND The City Council held a workshop on June 20,1994 to receive an interim report and update on the status of the organized collection study process. At the workshop, a consensus was reached that the City should begin negotiations with existing haulers on organized collection based on the concept contract as contained in the Contract Outline. City Council members acknowledged that the awarding of additional customers based on performance criteria would be problematic; however, they still believed that the organized collection program should incorporate performance evaluation criteria, if possible City Council members agreed that if the reporting requirement was not necessary, i.e., if Carver County could supply the reports, then it would not be a necessary component of the contractor the City to receive individual reports. Council members also wanted included, as part of tote basic collection package, door side pickup for disabled individuals. Finally, it was felt that i ,common billing format would be desirable for the `organized collection vrom m. , A The Organized Collection Study Committee met three times to review the pro0tised contract. Committee meetings served As .a point of discussion and debate with the_ haulers for the basic elements of the contract. Several of the haulers also submitted written comments to the project consultant for consideration. There are maay details in the contract in which no consensus was reached. The Study Committee' ". has " "embraced the conceptual elements of the contract and acknowledged that details of a cd'ct are subject to a negotiation process with the haulers. The Study Committee has recommended the City Council authorize negotiation of a contract for service with existing haulers. It is important to note that while the haulers have generally agreed on the basic elements of the contract, there are several items of concern and no consensus on many of the details of MEMORANDUM Chanhassen Organized Collection Study Phase II - Recommendations ' July 6, 1994 Page 2 ' the contract. Concerns have been expressed about the award of new accounts on a performance basis. The haulers believe this element is entirely subjective and will be difficult ' for the city to administer. There has been concern about the city's right to extend the option for a two year contract term. Concern has been expressed about establishing the hauler account verification as of January 1, 1994, rather than a future date. Haulers have also ' questioned the city's need for reporting requirements. The City Council, as part of a "dual track" approach, requested that the haulers develop an ' alternative collection system that would address the concerns of the City as outlined in the Organized Collection Study. In response, the haulers presented an alternative that would maintain an open system, but would zone the city to have one day of collection per zone. ' This alternative addressed the issue of aesthetics, but not the issues of road impact, pollution, multiple vehicles, etc. Neither the Organized Collection Study Committee nor City Council deemed this alternative as adequate to address the issues outlined in the Study. ' RECOMMENDATIONS ' It is recommended that the City Council adopt the following motion: "The City Council of the City of Chanhassen, Minnesota has reviewed and approved the ' conceptual elements as a framework for the organized collection contract and authorizes staff to negotiate a contract with a consortium of existing haulers based on the Chanhassen ' Collection Contract Outline. The negotiating team for the city shall include city staff (City Manager, Engineering, and Planning), the City Attorney, and the project consultant. A negotiated contract will be presented to the Study Committee and City Council for review and approval. The negotiation phase will be completed by October 15, 1994." If a negotiated contract with existing haulers is not found to be acceptable to the City Council, then a contract for competitive bid will be prepared and the city will prepare a request for proposals. ' ATTACHMENTS: 1. Chanhassen Collection Contract Outline 2. Haulers' Alternative Proposal c: Organized Collection Study Committee Chanhassen Collection Contract Outline IA Consortium form of organized collection - Existing haulers form a corporation - "the contractor" ' IC Four primary collection components: ' - Solid Waste - Recyclables - Yardwaste , - Bulk items IE 3 year term ; 2 year renewal option ' IF Contractor will establish initial districts, based upon I proportion of total accounts, subject to city approval IF Annual adjustments for growth: I - Minimum 50% prorata distribution of new households - Maximum 50% performance based distribution of new households I II Solid wast hauler 32 - 32 - 64 - 96 e: voles gallon gallon gallon gallon ne based collection - day certain /one ' bi- weekly weekly ' weekly weekly IIG Optional solid waste services ' - Door step collection - Wheeled carts ' - Solid waste overage fee - Curbside yardwaste (except seasonal collection) - Appliances - Bulk items , III Recyclable Collection - same day /one hauler ' - Newsprint - Corrugated cardboard - Mixed paper, mail ' - Magazines - Glass containers - Metal containers Plastic containers I IV Yardwaste Collection - same day /one hauler - Spring curbside - 2 weeks - Fall curbside - 2 weeks - Winter curbside - 1 week - Balance of curbside is an optional (fee) service V Bulk Item Collection - not day certain - Optional (fee) service; haulers bill but may subcontract Household goods Construction debris Appliances VI Performance Standards - Missed stop - Contractor billing - Vacation credit - Personnel requirements - Equipment requirements - Performance bond - Insurance - Performance evaluation criteria /review process - Termination - .. - .. . :•r .- n HIIY.H : LfI I i Npvsmber 24, 1993 r Tp the Mayor and the City Council for the City of Chanhassen Four of the six residential garbage hauler, have met twiceat CXty Hall, to discuss our current rel ationship wi r a�denta. We feel that this relati G; onship has taken o th th n aFv*rsari41 tones and this is not o w nt to work with the City M our intent. All of th wPte C411actiott issues. 1n addressing their Concerns on T a aulars have identified possible of discussio a d tag sons of the City concerns and we have included that W w also be open to discussing other options as they w Would hope that this would be a return to a healthy c' °- ative relationship be.twean the and your solid was' e rv,ice providers. 1 1.24.1:' ?. I_: Post -It" brand fax transmittal memo 767I Fs or p.Q.s s. o Deak7 a tom o. CO. D ept. one It •x az! Aagazd Rest Admixal Waste Chaska ftnitAtion Woodlake Sanitation I 1.24.19 12 � Hauler's Proposal to the City of Chanhassen 1 OVE�V*W In !an ;effort to fund workable solutions for the City of Chanhassen it reside ts, nand the curnnt licensed haulers, two hauler work sessions hav s ' been h ld iat city hall with ove e were tter�ded by four of the six residential b haulers: y city staff. These meetings ' Sanita oni Admiral Waste, and Aagard West. We hav all agr e' Chaska follow 9! proposed actions. agreed to the ' ID ENfff�l HIGH RISK ROADS Di ect your public works department to provide all licensed haulers with ' a list f s�aecific streets that are at high risk for damage once a ear, Al haule w ll use only small collection vehicles (S ton axle) on these few streets 1 YARD BASTE COLLECTION ' S ce I the collection of yard waste requires a third truck b haule , wF recommend that the city look at options to deal with this. Some sugges ions brought out at our work sessions include; A paper bag system ' manda ed !by the city, increased accessibility to the city's y compost site, a spring i'an fall collection sponsored by the city and all the haulers, city ' imposed 1 rniits on when yard waste could be collected, and increased cii efforts lat education and compost bin distribution, y i ' DIST IC1I'6 Al ow the haulers to provide a districting plan for approval that wru;d ensure ino,neighborhood had service more than one day in the week. SPHI G �OAD POSTINGS ' Li it `residential collections during spring road postings to small (to n per ax e) collection vehicles on residential streets. Such a p would require the ci to provide several safe areas where haulers could transfer waste into 1 larger of eetion vehicles. We would work with the city to implement this provds on , s quickly as possible. ' Tom II I�iolinc Gary Lano Nancy Lee Chris Bmtw rjgk I Wood�ake Sanitation Chaska Sanitation Admik $food ral Waste Asgard West 1 1